2004, 06-01 Study Session MinutesAttendance:
Councilmembers:
Michael DeVleming, Mayor
Diana Wilhite, Deputy Mayor
Dick Denenny, Councilmember
Mike Flanigan, Councilmember
Gary Schimmels, Councilmember
Rich Munson, Councilmember
Steve Taylor, Councilmember
MINUTES
City of Spokane Valley
City Council Study Session
June 1, 2004, 6:00 p.m.
Staff:
Dave Mercier City Manager
Nina Regor, Deputy City Manager
Ken Thompson, Finance Director
Neil Kersten, Public Works Director
Mike Jackson, Parks & Recreation Director
Marina Sukup, Community Development Director
Cary Driskell, Deputy City Attorney
Cal Walker, Police Chief
Tom Scholtens, Building Official
Sue Pearson, Deputy City Clerk
Chris Bainbridge, City Clerk
Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone
that this is a study session and requested that all electronic devices be turned off for the duration of
the meeting.
Mayor DeVleming announced that Council will hold an Executive Session at the end of tonight's meeting
for consultation with their attorney, that the session should last about twenty minutes; and that no
decisions will be made after reconvening the meeting.
Employee Introductions: Public Works Director Kersten introduced Carolyn George, new Public Works
Administrative Assistant. Council welcomed Carolyn to the City.
1. Appointments: Sign Ad Hoc Committee — Mayor DeVleming
It was moved by Mayor DeVleming and seconded by Councilmember Munson to appoint Duane Halliday
and John Johnston to the Ad Hoc Sign Committee. Vote by Acclamation: In Favor: Unanimous.
Opposed: None. Abstentions: None. Motion carried.
2. Appointments: Student Advisory Council — Mayor DeVleming
Mayor DeVleming reported that after a year of working on student advisory council formation, lots of
pizza and lots of discussion, tonight he will announce the members of the first Student Advisory Council.
It was moved by Mayor DeVleming and seconded by Councilmember Munson to appoint the following
students to the Student Advisory Council:
Central Valley High School: Randee Berg, Tanner Daly, Michael Green
East Valley High School: Kellie Brennan
University High School: Victoria Benson, Paul Heim, Katie Osterback
Valley Christian High School: Steven Leeberg
West Valley High School: Joseph Neaves
Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried.
Study Session Minutes 06 -01 -04 Page 1 of 6
Date Approved by Council: 06 -08 -04
3. Hotel /Motel Fund Allocations — Councilmember Flanigan
3a. Spokane Valley Junior Soccer Association:
It was moved by Councilmember Flanigan and seconded by Deputy Mayor Wilhite, that this Council
authorize the re- allocation of the money that was allocated in 2003 for the Spokane Valley Junior Soccer
Association in regard to Plantes Ferry Park, the amount of $19,377.64 which will, when added to the
2004 agreement, total $39,377.64. Councilmember Flanigan explained that this motion is an attempt to
resolve issues, that it is not new money as the funds were awarded previously, but it is moving funds
granted from 2003 to 2004 so that procedural errors that were made can be rectified. Councilmember
Munson stated that he feels uncomfortable in setting precedent in carrying over funds from one fiscal year
to another and in the future does not intend to support such movement; but realizes this is a special
situation and will vote in favor of the matter. Vote by Acclamation: In Favor: Unanimous. Opposed:
None. Abstentions: None. Motion carried.
3b. Valleyfest:
It was moved by Councilmember Flanigan and seconded by Councilmember Munson that out of the
reserves for the hotel /motel tax money, we allocate $15, 000 to Valleyfest specifically for a regional
television ad campaign promoting Valleyfest and various other entities in conjunction with Valleyfest that
takes place within the valley and the region. Councilmember Flanigan explained that this is to promote
several aspects of the Spokane Valley region wide; and similar to the ad previously authorized in the State
Tourism Guide, this is one of the purest uses of funds in the hotel /motel allocation of funds.
Councilmember Flanigan stated that all Spokane Valley hotels will be included in the ad listing; and
added that the promotion of the event will begin about mid - August. Councilmember Flanigan said this
year's Valleyfest is working almost as an umbrella with other entities, and this year's three -day
celebration will also help promote mall shopping; in addition, the Hotel/Motel committee voted
unanimously to support this and that Jeff Fox was the originator of the motion.
Councilmember Taylor asked why this is brought up now instead of when other proposals are normally
brought forward; and Councilmember Flanigan replied that Valleyfest was still on its "training wheels,"
that since then the focus group has donated a marketing person who put the proposal together; that they
have corporate sponsorship now close to the total amount they had for last year's events; the proposal has
come now as they feel Spokane Valley would like to be involved in the movement, that it is a good
opportunity to join in and show support for this event; and he reminded everyone that Valleyfest
withdrew their request last time in order not to draw any kind of controversy as their earliest proposal was
very general and this proposal is very specific. Councilmember Taylor expressed concern of setting a
precedent with this and asked if others were made aware of this reserve fund. Councilmember Flanigan
explained that anyone can make requests of Council at any time, and that this request did go through the
Committee; and after allocation of these funds, there will be approximately $65 to $75,000 in remaining
funds. Councilmember Taylor stated that he would like to see a more disciplined approach in the future
as it might appear to other competing agencies that Valleyfest withdrew from the last competition and
came forward later when there was less competition for funds. Mayor DeVleming added that he feels this
request meets the definition for use of the reserve funds. Councilmember Denenny asked about acquiring
input from Jeff Fox about the impact this will have and Councilmember Flanigan said that this will be
tracked and added that Valleyfest will also be polling on site. Councilmember Taylor concluded by
stating that he would like to see this type of request made during the appropriate season so the process
will be considered fair by all entities that might want to compete for these funds. Vote by Acclamation: In
Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried.
4. Health District Helmet Safety Presentation — Ana Matthews, Health District
Ana Matthews thanked Council for the opportunity to present data in support of their campaign for a
helmet ordinance, and introduced Collision Investigator, Officer Ken Thomas. Ms. Matthews gave her
PowerPoint presentation explaining the reasons for a helmet law; followed by Officer Thomas speaking
Study Session Minutes 06 -01 -04 Page 2 of 6
Date Approved by Council: 06 -08 -04
concerning enforcement issues, that other ordinances have been designed imposing noncompliance as a
civil infraction; that officers tend to use the "stop and talk" approach to educate members of the
community of the dangers of not wearing a helmet. Ms. Matthews also mentioned that the Traffic Safety
Commission has pledged free helmets to those in need, and that the Spokane City Council is putting forth
their ordinance this month. Officer Thomas added that he has a concern with motorized scooters as there
are presently no regulations governing helmet use and scooters. After brief discussion, it was agreed that
council would like to review several model ordinances for further discussion and consideration.
5. Economic Development Council Presentation — Jon Eliassen, President, CEO
Jon Eliassen, President and CEO of the Economic Development Council, went through a PowerPoint
presentation on their economic development strategy for 2004 -2007. After the presentation, Mr. Eliassen
mentioned that the EDC coordinates with other organizations like the Chamber of Commerce, in an
attempt to eliminate duplication of funding efforts.
Mayor DeVleming called for a recess at 7:05 p.m., and reconvened the meeting at 7:15 p.m.
6. Proposed Opportunity Cemetery Association Easement — Cary Driskell/Neil Kersten
Deputy City Attorney Driskell explained that Opportunity Cemetery Association's Pines Cemetery, has
an irrigation water line within the 16 Avenue right -of -way; that crews were in the process of preliminary
work for the reconstruction of 16 Avenue when they discovered a water pipe along 16 Street, which has
been in place for approximately fifty years without permission; that private parties must acquire
permission from governmental units to cross a right -of -way, and that staff is in the process of obtaining a
legal description showing the exact location of the water pipe, adding that when that is provided, staff will
present the easement for Council consideration. Public Works Director Kersten added that the cost
should not be significant, and it is the responsibility of the Association to pay for the relocation. It was
Council consensus to move forward with the easement.
7. Spokane County Water District #3, Water Line Easement — Neil Kersten/Steve Worley
Public Works Director Kersten reported that as part of the Park Road widening project, a .54 acre parcel
was purchased near the north end of the project area for the construction of a stormwater treatment swale;
that Spokane County Water District #3 requested a 15 -foot water line easement across the north boundary
of the swale property and they plan to construct a water tower east of the swale site and the water line
easement would be used to supply water to the tower. In addition, Director Kersten explained that the
SCWD #3 is offering to waive the $3,725.00 installation fee for the irrigation service. It was mentioned
that the service will be metered. It was moved by Councilmember Munson and seconded by
Councilmember Flanigan to give the City Manager approval to execute an easement document with
Water District #3. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None.
Motion carried.
8. Setback Requirements — Marina Sukup
Community Development Director Sukup explained that the interim zoning code includes many
regulations which do not apply within urban areas and other regulations which staff suggested should be
amended to eliminate redundancy, ambiguity and conflicts in enforcement. Director Sukup went through
her PowerPoint presentation on proposed dimensional standards, which explained the current setbacks
and showed proposed setbacks and the affects those changes would have on the areas. It was mentioned
that these changes in setbacks would be for new developments. Director Sukup added that staff realizes
some of these issues are a matter of community preference, such as how close is too close, how small can
lots be before they are uncomfortably small, and that many issues depend on what affects the community
wants. She stressed that proposed changes are to make the rules more clear, to limit the amount of time it
takes to go through the administrative exception process as it is expensive and takes some unnecessary
staff time; in addition, she mentioned that the Homebuilders Association is very positive about the
Study Session Minutes 06 -01 -04 Page 3 of 6
Date Approved by Council: 06 -08 -04
proposed changes. After further discussion on lot sizes and what the comp plan would allow, City
Manager Mercier said policy implications have been discussed tonight, that during the April 6 meeting,
council was briefed on issues encountering in the permit shop, and that the draft ordinance is included to
provide context to see how these numbers fit into the draft ordinance; that his experience is councils
generally prefer planning commissions to gather input, and then convey that input to council in the form
of a draft ordinance; that if we are operating out of sequence, to let us know how to meet Council's
preferences. Councilmember Munson stated he is concerned that when it comes to policy decision,
council defers to staff recommendations, and that perhaps council defers when they should have discussed
the policy in more depth; he added there are times when council does not want to see an ordinance along
with a position paper, but the paper should be complete to provide all the parameters to be debated so that
council can come up with a policy; that he is concerned that perhaps council should be debating the issues
more to make sure what is finalized is what the community wants. Mayor DeVleming added that one of
the keys to our success is our level of communication; and feels that staff will address the majority of
situations during the three -touch principle, keeping in mind there will be times when things should be
done differently and that Council needs to be flexible.
City Manager Mercier said that as we are involved with a huge volume of issues, there is a potential of
using a sequence wherein papers will be in circulation in the community that might touch on a hot issue,
that were not circulated to council beforehand; but that sometimes those issues have not ripened to the
council stage of attention. To help avoid misfires, Mr. Mercier asked Council to identify hot topics so
staff will be aware to circulate materials to council even if the matter is not brought before council for
action; and concluded by stating that we are trying to fine -tune communication so not to be caught by
surprise and at the same time not come to a complete standstill before an issue's initial showing.
9. Proposed Interim Zoning Control, Estate Lots — Marina Sukup
Community Development Director Sukup explained that established zoning classifications provide for a
maximum density of seven dwelling units per acre for areas designated low density residential; that two,
well - established neighborhoods located within those areas have requested consideration of a regulatory
mechanism that would continue to permit the keeping of a limited number of large animals, primarily
horses. Director Sukup explained that those neighborhoods were originally established over 25 years ago
to allow keeping such animals, and the practice was permitted under the previous zoning classification.
Director Sukup said that the proposed amendment in the Interim Development Regulations is subject to
review by the Department of Community Trade and Economic Development (CTED); and that subject to
council direction, a public hearing will be held by the Planning Commission with their recommendation
being forwarded to the City Council. City Manager Mercier added that other issues are at large including
a third neighborhood whose residents may be circulating a petition to also have that designation. Ms.
Sukup mentioned that staff is aware that "one size does not fit all," and that GMA mandates working with
neighborhoods to determine what the neighborhood wants.
Deputy City Attorney Driskell stated that staff is trying to satisfy as best it can, the citizen requests and
comments with what is understood GMA requires and allows us to do, and that we have adopted an
interim comprehensive plan, and before adoption of a final plan, there will be many discussions among
staff and residents to best determine what issues must be addressed now; that now, people who have
horses and large animals have legal nonconforming rights from the county. Attorney Driskell added that
staff has submitted this issue to CTED to gain information and make sure we operate within the
constraints of GMA. Ms. Sukup added that some of the difficulty is the animals; where two animals
would be appropriate, but six would not be, but the neighbors are asking to maintain the status quo until
we can go through the process, and the status quo is allowing large animals as an allowed use. It was
council consensus that staff continue with this issue and bring the matter back again for further
development and discussion.
Study Session Minutes 06 -01 -04 Page 4 of 6
Date Approved by Council: 06 -08 -04
10. Sprague /Appleway Couplet, Economic Analysis — Marina Sukup
Community Development Director Sukup said she is requesting authorization for the City Manager to
negotiate and execute an agreement with ECONorthwest for the development of an economic analysis on
the Sprague /Appleway Corridor; that they extended the deadline to submit proposals, and after review,
staff found ECONorthwest's proposal the most responsive. It was moved by Councilmember Munson and
seconded by Councilmember Flanigan to authorize the City Manager to negotiate and execute a contract
with ECONorthwest for the development of an economic analysis on the Sprague /Appleway Corridor.
Councilmembers Munson and Denenny mentioned that they feel the response is well done, and
Councilmember Munson asked that in the negotiation process, the role of the council be expanded should
ECONorthwest seek input on how they are progressing. Director Sukup stated that ECONorthwest has
proposed an aggressive timetable, and that staff can submit monthly reports on the progress. City
Manager Mercier said he anticipates that the company will closely follow the scope of work, that if they
need factual data to incorporate into the analysis process they can solicit that from staff; he feels the
company will not ask policy questions as the intent is to perform the economic scan as things are now.
Councilmember Flanigan suggested having an interim report as the company accomplishes each task,
thereby allowing council the opportunity to review the progress and provide feedback. It was Council
consensus to monitor the progress of the project; and if anything alarming, or out of the ordinary occurs,
staff will bring those issues to Council's attention. After brief discussion concerning the expanded or
basic plan, it was determined to authorize the basic plan. Vote by Acclamation on the motion to authorize
the City Manager to negotiate and execute a contract with ECONorthwest for the development of an
Economic Analysis on the Sprague /Appleway Corridor for the Basic Plan: In Favor: Unanimous.
Opposed: None. Abstentions: None. Motion carried.
It was moved by Mayor DeVleming to extend the meeting to 9:15 p.m. There were no objections.
11. Business License Program Discussion — Ken Thompson
Finance Director Thompson stated that tonight he is not seeking any decision, but rather is presenting
options to consider regarding the business license /registration program. As background, Director
Thompson explained that the City contracted with Microflex to identify and register businesses operating
within our city limits; and that there are over 2800 registered businesses within Microflex's database.
Director Thompson estimated a few hundred more businesses need to be registered, and the issues to
consider are who should handle that process. Options include Microflex, the City, or the State
Department of Licensing, which Mr. Thompson said is his preference as that would be a one -stop
shopping for many businesses, and we would not have to hire any additional employees. Other issues to
determine are whether we should recover our costs as it is estimated that it takes $63,000 a year to
maintain the database, and we have already spent over $35,000 in direct costs to create the existing
database. Director Thompson said he would like to try a program for three years and then re- examine it
including re- examination of any fee charged.
Councilmember Munson said he does not want to recover the costs of registering businesses last year as
we said in our ordinance we would not; that if we were not going to charge a fee the first year we should
not recover those first year costs. Councilmember Taylor stated he would have liked to charge a fee from
the beginning and feels it fiscally responsible to recover costs. Director Thompson went over the fees
anticipated if the Department of Licensing were to handle the program. After further discussion on
whether to charge a fee, it was council consensus to move forward with the Department of Licensing
handling the registrations, and Mayor DeVleming added that staff and Council will consider the fee and
recovery costs and discuss that at a future date, including the issue of how much or if any charge should
be assessed to the nonprofit businesses. City Manager Mercier said staff will work to do an amortization
of costs of building a database versus the cost of charging a license for the first year.
Study Session Minutes 06 -01 -04 Page 5 of 6
Date Approved by Council: 06 -08 -04
12. Advance Agenda — Mayor DeVleming
There were no suggestions for revisions to the advance agenda.
13. Council Check -ln — Dave Mercier: - no issues.
14. City Manager Comments — Dave Mercier
City Manager Mercier said he wanted to alert Council of the various openings on the AWC Boards, with
a potential opening in for an Eastern at -large position, which is currently occupied by a councilmember at
Pasco who will be seeking re- election; but that AWC still solicits interest.
EXECUTIVE SESSION: It was moved by Mayor DeVleming and seconded that Council retreat to the
Opportunity conference room for an Executive Session for consultation with their attorney; that the
estimated time is no greater than 25 minutes, and that Council will come back and adjourn. The motion
passed unanimously.
Council adjourned into executive session at 9:12 p.m. Mayor DeVleming declared Council out of
executive session at 9:25 p.m., and at 9:26 p.m. it was moved by Mayor DeVleming and seconded by
Councilmember Flanigan to adjourn. The motion passed unanimously.
S
risfine Bainbridge, ity Clerk
Michael DeVleming, ayor
Study Session Minutes 06 -01 -04 Page 6 of 6
Date Approved by Council: 06 -08 -04
Student Advisory Council
Central Valley School
Randee Berg
Tanner Daly
Michael Green
East Valley High School
Kellie Brennan
University High School
Victoria Benson
Paul Heim
Katie Osterback
Valley Christian High School
Steven Leeberg
West Valley High School
Joseph Neaves
-/-69
Spokane Area EDC
Economic Development Strategy
2004 -2007
Spokane Area Economic Development Council
Jon Eliassen, President Es CEO
801 W. Riverside, Suite 302
Spokane, WA 99201.0901
Tel 509.742.9350
jeliassen®spokaneedc.org
vwvw.spokaneedc.org
May 1, 2004
v.4
Introduction 2
Economic Development Strategy ..2
Strategic Planning Process 2
Executive Summary 3
EDC Mission 3
EDC Core Competencies 3
EDC Project Management 4
Goals & Measuring Progress 5
Sustaining Successful Economic Development 6
Five -Point Economic Development Agenda 6
Five•Point Economic Development Agenda 7
1. Business Identity 7
2. Resource Collaboration 7
3. Cluster Development 8
4. Community Competitiveness 9
5. Economic Planning 9
How Do We Get There? 10
Implementation Plan Timeline Et Budget 11
Appendix
A. Why Invest in Economic Development
Spokane Area EDC
Economic Development Strategy
Table of Contents
Spokane Area EDC Economic Development Strategy City /County
V4 -May 2004 Table of Contents
Economic Development Strategy
The Spokane Area Economic Development Council (EDC) has initiated a number of changes,
including new leadership — recently (Dec 2003) appointing Jon Eliassen as President & CEO. To
assist the EDC with significant operational changes. Chabin Concepts was retained to work with
staff to develop a three -to-five year strategic plan.
Strategic Planning Process
The EDC embarked on a re- engineering process to focus efforts that result in:
1) economic impact on Spokane;
2) county facilitation of business expansion, location and job create; and
3) an organized, efficient and effective EDC.
Re- Engineering the EDC
1
What .ve we
kr % 5 rya? rid
Prospects
Alignment with Orpantsatlon*I Competitiveness Implementation
Partners Structure
Is it ech*1� h C
Dose it create
jobs?
6.1.
E rcrsnn9
Now
Who less
provides ED
What is their role
wi th us?
Who is our core
team?
Staffing - do we
rave the atrlrty
to accompirotr
the task?
What do we
need to dtange
to accampleh
our goal?
Introduction
Do we have the
nght tools?
Are we
marketing
strategically
Do we have
oompe4RNe
product?
P ttfo r nw...,.
kleaeurenients
Are we
efficient?
Ar e we
enedive?
Economic Need - 9,000 Jobs by 2010
As part of the analysis, a "job need^ was calculated using the assumption that labor growth and
labor participation rates stayed constant to 2010 and a goal was set to maintain a current
unemployment rate, over 16,000 jobs need to be created by 2010. Applying national
employment projections to Spokane's current economic base provided a potential employment
growth of existing businesses of approximately 7,000 jobs by 2010 — a shortfall of nearly 9,000
jobs. This shortfall is the immediate economic need that must be addressed with aggressive
economic development services.
The following organizational and economic development strategy is the result of an EDC
operational assessment. analysis of Spokane's economic base and review of other economic
development service provider organizations.
Spokane Area EDC Economic Development Strategy City /County
V4 -May 2004 f 1
EDC Mission
The main rule of any EDC is to be the custodian of the economy. Often this is over looked as
discrete programs are initiated to achieve economic vitality. There arc many other organizations
involved and contributing to economic development, however, only one organization is
responsible for tracking the economy as a whole and coordinating economic development plans.
The Mission of the EDC will be focused on business. resulting in economic expansion and
prosperity.
Proposed New Mission Statement:
Continuously improve the Spokane Economy through a business- focused strategy,
proactively promoting Spokane's business Identity and facilitating new investment
and jobs in primary clusters while leveraging and collaborating with partner
organizations.
As stewards of the economy, the EDC must look at the whole not just the pieces of the economic
foundation, competitiveness structure and growth opportunities. Otherwise a "disconnect'' among
community leadership to see the bit, picture and how all the initiatives fit into that picture can
occur. An EDC's efforts are broad -based and subjective — not typically a tangible project that can
be visualized, such as, a business park development.
To achieve the mission, the EDC's focus is business, but they must also coordinate solutions to
business with numerous other institutions, organizations and agencies.
EDC Core Competencies
The EDC's core competencies reflect its message and competitive strategy:
Spokane Area EDC Core Competencies
1. Focus — Economic Expansion
2. Expertise — Facilitate Business Solutions
3. Collaborate — Become Globally - Competitive
The EDC will be focused on business — providing confidential solution -based facilitation to assist
businesses expand and locate in Spokane. And will also be working directly with Spokane
communities to become globally- competitive.
I Spokane Area EDC Economic Development Strategy
V4 -May 2004
Executive Summary
City /County
[31
EDC Project Management
The EDC staff are project managers, facilitating the needs of business with solutions and
connections to the nght resources to assist their location, expansion and global competitiveness,
as noted in the example below:
Business Issues
ittt> l \
Market
Access
Business Solutions
(:_inancing
(T mkn
Spokane Area EX Economic Development Strategy
V4 -May 2004
/ )
Confidential Solution•Based Facilitation
City/County
[
Goals � Measuring Progress
Economic development is typically an elusive yet very competitive activity, Many Id's
measure their success just on business attraction; however, in today's global economy strategies
built solely on business attrar:tion will likely fail.
The global economy brings new challenges as well
as opportunities, which has caused significant
changes in the economic development landscape
requiring more strategic action plans to achieve
globally-competitive communities:
"Clloba1Iy- competitive communities ensure a
community's strong employment and tax base."
A community's global competitiveness depends on a
strong business community, a commitment to assist
"A globally-competitive community shapes,
pursues, and adheres to a comprehensive
strategy of balanced gravth from high-
performance economic development,
emphasizing wealth creation through
modem manufacturing and the service
industries that support tt."
frrtemaUorrat CifyiCorrrrty Management
Association (CAM)
1
the manufacturing base with global market challenges, a highly productive workforce, a support
network for entrepreneurs and innovation, a healthy environment and a good quality of life.
To achieve the EDC's mission, create globally competitive communities and a healthy economy,
the EDC has set the following, measurable, three year goals:
Spokane Area EDC
Three -Year Goals
0 Create a "high - performance " economic development environment for existing and new
business to maximize their performance to compete globally
9 Create, with partners, a "collaborate to compete" rnindset
L7 Create and market a business identity as a "globally - competitive community
El Create cluster development strategies with partners to target locating businesses in
vacant facilities and business parks
Facilitate generation of 2,000 new jobs per year in primary clusters with potential of 1.5
multiplier effect
Cl Lower the current unemployment rate of 6.6% (2003) by 1% or at least equal to national
average
L] Increase average earnings per worker In primary clusters to an annual average of 2
C7 Facilitate new Investment In infrastructure, buildings and equipment of at (east $15
million
LJ Leverage EDC investment with partner resources to deliver "`high- performance"
economic development
I] Strengthen and expand existing economic clusters so similar and Interdependent
firms will be attracted to Spokane
Spokane Area EDC Economic Deveioprnent Strategy
V4-May 2004
City /County
X51
Sustaining Successful Economic Development
The EDC's staffing and funding has continually decreased since the late 1990s. During this time
other new initiatives were started in the community, siphoning dollars away from Spokane's core
economic development initiatives. Although new
In the September 2000. A Strategic initiatives are important. they should not be at the expense
Plan for the Sustainable Economic of the primary Economic Development Organization who
Development of the Spokane Area provides fundamental economic development services.
of Washington, The EDC cannot achieve the tnission or goals without
David R Kotzow, sufficient and effective staff, tools and funding.
recommended the EDC should
maintain an annual funding of Today, with intense competition for fewer business
S2.S0 per resident. expansions and locations. the ratio for funding is at
minimum 53.75 per resident.
To achieve the mission and goals, the EDC's funding must be increased from the current
S750,000 annual budget to S1.6 million_ In a public - private partnership typically 60% of the
funding is public and 40% is private.
Five -Point Economic Development Agenda
The purpose of the strategy planning
model, realign the organization for
effectiveness and efficiency, and
recommend an economic development
action plan focused on improving the
economic vitality of Spokane.
Spokane Area Economic
Development Council will lead and
drive a five -point economic development agenda for Spokane:
Spokane Area EDC Economic Development Strategy
V4-may 2004
process was to re- engineer the EDC's service delivery
Consultant Recommendation: For Spokane to
become a globally - competitive business destination
and achieve 'high - performance' economic development.
the EDC must be a leader in collaborating, coordinating.
and implementing multiple strategic actions.
Spokane Area EDC Five •Point Economic Development Agenda
1. Business Identity
National awareness of Spokane's globally - competitive
business climate.
2. Resource Collaboration Key resource organization "Red Team' agreements.
3. Cluster Development Facilitate expansion and attraction of six high- growth
industry clusters.
4. Competitive Communities Community products, infrastructure and workforce
5. Economic Planning Transitioning ideas and plans into prosperity.
City /County
[6
Five -Point Economic Development Agenda
Action: Spokane Area Economic Development Council recognizes the immediate job challenge
to sustaining and improving the economic health of Spokane and will lead and drive an
aggressive Five -Point Econotnic Development Agenda for Spokane.
1. Business Identity
Why?
Goal
Actions
Why?
Goal
Actions
Although the largest metropolitan hub in eastern Washington and the Inland
Northwest, Spokane is still lacking a business identity outside the region.
Create a national awareness of Spokane as a premier business destination committed
to partnering with business to maximize their performance.
✓ Promote and communicate EDC's mission and business- focused strategy for
creating a globally- competitive community
✓ Establish a business identity for Spokane
✓ Initiate aggressive national- regional media exposure and direct messaging
✓ Initiate "Meet the (Site) Consultant" series
2. Resource Collaboration
To create a "high- performance" economic development environment and a
"collaborate to compete" mindset, business resource agencies need to map their
missions and find intersections with each other to leverage their resources and
expertise.
The business audience is inundated with service messages from multiple providers.
Reduce any duplicative services and/or confusion of services otTeredlavailable.
Strategically allocate resources to achieve maximum economic benefit.
With Chamber, bring "Business Service Providers" (resource agencies) together to
create a Business Service Provider network. Create a roadmap to link businesses
with appropriate services. Identify methods to leverage resources to better serve the
business community and achieve common goals.
✓ With Chamber, hold a "Collaborate to Compete" Summit with key resource
organizations serving business for strategic economic expansion planning
✓ With Chamber and other key resource agencies, establish the SRBC as a one -
stop business service center, co- locating services and leveraging resources
✓ Establish Red Team working agreements v ith key partners
✓ Establish working agreement with Airport to assist in promoting, marketing and
recruiting targeted business to Airport Business Park
Spokane Area EDC Economic Development Strategy
V4 -May 2004
City /County
[71
3. Cluster Development
Why?
Goal
Act1ons
Spokane has a diverse economic base consisting of several traditional and emerging
primary industry clusters with potential for expansion and growth.
Primary industry (whether manufacturing or services) provides the highest
contribution to the community in terms of economic impact — jobs, higher earnings
and multiplier effect.
Focus on facilitating expansion and location of key industry clusters with growth
potential.
Implement direct marketing to targeted clusters and facilitate solutions for new
cluster business locations.
Collaborate with partners to implement strategic outreach to clusters/businesses to
Zink them with resources to maximize their performance through new markets,
products and processes.
✓ Focus on key primary clusters with wealth and job creation potential
✓ EDC staff to become industry specialists - account managers responsible for
portfolio of existing and new businesses and projects
✓ Create project Red reams with key partner organizations
✓ Attraction
✓ Increase deal flow
✓ Prepare Spokane's business case for each targeted cluster
✓ Leverage Chamber's "Homecoming" campaign as part of direct mail an d
messaging campaign
✓ Aggressive direct marketing and prospecting calls on six targeted clusters:
Higher Education, Hcalth!BioMedical, Info - Technology, Advanced
Manufacturing, Logistics, Financial and Shared Services
✓ Schedule FAM tours for prospects and site consultants
✓ investigate with Airport feasibility of expanding the logistics cluster
✓ Participate in the Council on Competitiveness to identify and narrow
targets for attraction in the "innovation" field
✓ Retention & Expansion
✓ Initiate, with partners, focus group meetings with key Spokane clusters
✓ identify opportunities and specific needs of clusters — develop solutions
and connect businesses with resources
✓ Market key services and incentives to clusters (i.e. CEZ)
✓ Work with International Trade Alliance to increase exporting
✓ Work with technology partners for aggressive outreach to existing clusters
✓ Work with Chamber's cluster committees on higher education, medical -
health clusters and manufacturing
✓ Woric with Chamber to retain and expand Fairchild AFB
Spokane Area EDC Economic Development Strategy
V4-May 2004
City /County
[81
4. Community Competitiveness
Why?
Goal
Actions
Why?
Goal
Actions
The economic landscape has changed the way everyone is doing business —
communities must be more strategic, business focused and solution - oriented in
order to capture the limited opportunities of business expansion in the U.S.
To compete in the global market, Spokane communities must be prepared to quickly
facilitate locations, eliminate burdensome regulatory requirements, support small
business, foster neighborhood development, and promote quality schools with
school -to -work transition programs, as well as, have an exceptional quality of life.
Collaborate with Spokane communities and organizations to improve and maintain
enabling infrastructure to create globally - competitive communities.
✓ Work with cities on:
✓ Streamlined permit process
✓ Incentives
✓ Enabling infrastructure
✓ Shovel -ready land and buildings
✓ Local Ombudsman, after -care
✓ Unique assets and resources
✓ Work with WorkSource to identify' workforce in each community
✓ Work with WorkSource on creation of Skills Bank
5. Economic Planning
To improve economic performance and maintain a strong economy in the future,
plans must be established and stewarded to grow transitional economic
opportunities that are unique to the region.
Actively lead and assist economic transformation through vision. henchmarking and
long -term planning.
✓ Maintain an updated and current Comprehensive Economic Development
Strategy (CEDS)
✓ Maintain current decision- making location data on website
✓ Secure funding for enabling infrastructure
✓ Support partner organizations quest for state, federal and foundation funding
✓ Support Chamber's legislative agenda
✓ Maintain key economic indicators on the Spokane economy
✓ Work with key partners on development and business recruitment strategies,
i.c., downtown, neighborhoods, industrial and business parks, et al
✓ Encourage Chamber and K -12 Education to develop unique programs for next
generation workforce
Spokane Area EDC Economk Development Strategy City /County
V4 -May 2004 (9
To be successful the EDC nerds to change the way it has been doing business and take on new
roles and responsibilities. A detailed Implementation Guide has been prepared to address how the
EDC should re- organize and reposition to be a high - performance "trusted agent' for economic
development and accomplish the Five -Point Economic Development Agenda.
The implementation plan is directly related to the success of the Five -Point Economic
Development Agenda_ Specific action tasks and detailed checklists are provided in the
Implementation Guide. The following graphic overviews the re- organization and repositioning of
the EDC:
Organrte to Compete
• Aod Staff capacity and
• Ste • Industry Spsaafist d
Account Managers
• Slyest an new loots
• Establish EDC snag•
• Policies 1 procedures
• Match assets to business
expens on-att acson
I Spokane Area EDC Economic- Development Strategy
V4-May 2004
How Do We Get There?
'3
Rod Team Agreements
• Align goals and strategass on
hoer to best sane bagel
burin le dusters
• Integrate sent* dewy,
reMrais end Isom approaches
• Establish Red Team seating
agreements, existing ad new
business devetopmemb
• Leverage reaourcss; co
location and loaned enaautivos
City /County
[10
Implementation Plan Timeline Et Budget
The new and revised re- positioning and focused tasks will require additional incremental budget
for set -up and implementation. The estimated budget ranges noted in the following matrix
represents additional budget needed to staff and implement the aggressive Economic
Development Strategy recommended. There are multiple tasks involved in the re- organization
and repositioning of the EDC, including new tools, training and implementation of aggressive
marketing and sales. The budget outlines estimated one -time and annual costs.
Implementation Tasks, Schedule & Incremental Budget Range
TASKS
(New. in addition to current on -going tasks)
Organize to Compete
Focus. interne/ Capacity & Competitiveness
Board Composition
Staff Capacity
Staff Transition and Training
Prospecting & Management Tools
EDC Image
Measunng Progress
Get on Radar Screen
Focus External Promotion & Marketing Collateral
Marketing Collateral
Equipment
Promotional Tactics
Cluster Development
Focus Busyness Attraction & Expansion
Lead Generation
Clusters - Attraction Targeting
Site Selectors
Clusters- Existing Business
Rod Team Agreements
Focus. Integrating Service Delivery, Leverage,
Business Attraction & Expansion
Faciiitating "Collaborate to Compete' Meeting
SRBC - One Stop & Co-Location
Loaned Executives
Competitive Communities
Focus. Economic Planning
CEDS
Infrastructure
Grant Applications
Estimated One -Time & Annual Cast Ranges,
New Tasks
TOTAL ANNUALIZED BUDGET
Timeline
2004'
tat Qtr
1st Qtr
2nd Qtr
lit Qtr
On -going
Estimated Incremental Budget Range
One-Time
566 - 5109,350
558,000 - 599,000
88,000 - 58.000
88,000 - 814,000
55.000 - 520,000
8141,350 - 5250.350
Annual
885,000 - 5116,000
897,200- 5162.400
5189,000 4270,800
8371,200 - 5547.900
51,400,000 - 51,800,000
Timeline Kick- offiComplebon & On -going
Spokane Area EDC Economic Devetopment Strategy
V4 -May 2004
City/County
[11
Ecnomk
Prop
SI�k
• Ualley
Community Development Department
ne 112004
• Request authorization for the City manager to negotiate
and execute a contract with ECONorthwest for an
Economic Analysis on the Sprague /Appleway Corridor
BA\CKGROUN
D�
• City Council approved the Scope of Work on April 13,
2004
• The deadline for submittal was extended to noon on
May 17, 2004
• The proposal submitted by ECONorthwest was found
most responsive
• The SVBA has retained Gonzaga University to
develop an analysis of business impact along
Sprague Avenue, and have offered to provide it as
additional resource for the City study
Scope of Work
• Impact on existing business of a change in motor
vehicle traffic during the 5, 10 and 20 year planning
horizon. Traffic forecast data will be coordinated
through the SRTC
• Impact on existing businesses of construction during a
5 year period
• Economic opportunities created by the extension of
Appleway to Sullivan and the opportunity cost of the
failure to extend Appleway during the 5. 10 and 20 year
planning period.
Barriers to successful redevelopment of the Corridor,
including institutional and regulatory barriers.
Sc;ope of Work
• Strategies to maximize redevelopment within the
Corridor, including but not limited to t circulation
improvements and land use regulations
• Mitigation strategies to counteract adverse economic
impact and /or lost opportunity for specific types of
business enterprise.
lir
inteiriim ZQniingj PrcposedI
UR-i Resd1entIiaiII Est3lLe
Community Development Department
\....,
Spoanliane
.Valley
7.
Purpose
• Brief City Council on proposed interim zoning — UR -1
14
BACKGROUND
• Authorized pursuant to RCW 35A.63.105, WAC 365-
195 -845, WAC 365 - 195 -855, and the City's Interim
Comprehensive Plan, Goal ED.5a and Policy ED.5.6
• Several established neighborhoods have expressed
concerns about piecemeal development which would
change the character of the neighborhood —
neighborhoods are UR 3.5 and UR 7
• The keeping of large animals is a recurring theme —
residents are passionate on both sides of the issue
• The Planned Unit Development (PUD) has been used to
circumvent the dimensional standards established by
Council without a corresponding benefit in urban
partly because of the structure of the zoning reg
BACKGROUND
• Primary issues is the keeping of large animals —
how many is too many?
• How far should structures housing animals be
from residences and adjacent property?
• If the City receives complaints, who should
arbitrate? (14.618.220 covers accessory uses)
• Should "Home Industry" be allowed?
Proposed Standards
Current
UR 3.5 UR7
Proposed
Minimum Lot Size
10,000 sq ft
6,000 sq ft.
40,000 sq ft
Front Setback
25'
35'
Lot Coverage
50 % -55%
30%
Side Yard
5' /story
5' /story
Side Yard (flanking)
25'
35'
Rear Yard
15'
20'
Proposed Standards
Next Steps...
• In order to impose interim zoning regulations,
it will be necessary to make findings and to
establish a work plan to resolve issues
• There are a number of environmental and
other issues which deserve additional study,
floodplain, erodible soils, old landfills, water
pressure, wastewater capacity, access
• Hearing before the Planning Commission
Prpo Diinwnsiionall
nd]airdis
Spbkan��
jUalley
Community Development Department
June 1, 2004
Purpose
• Brief City Council on proposed amendments to the
Interim Development Regulations related to
dimensional standards
BACKGROUND
• Authorized pursuant to RCW 35A.63.105, WAC 365-
195 -845, WAC 365 -195 -855, and the City's Interim
Comprehensive Plan, Goal ED.5a and PolicyED.5.6
• The interim Development Regulations include many
provisions which do not apply within urban areas and
other regulations which staff has suggested should be
amended to eliminate redundancy, ambiguity and
conflicts in enforcement
• On April 6, 2004, Council was briefed on problems,
including enforcement, associated with a "sliding scale"
of setback requirements and alternatives
• Current building setback
requirements — "rural"
vs. "urban"
• Significant customer
and staff time spent
figuring out building
setback requirements
• Customer service issue
for planning & building
staff
BACKGROUND
The
requirement is
5' per story —
is this a
second story?
55' from the roadway
centerline or 25' from the
front lot line, whichever is
greatest — where is the
roadway centerline?
•1111111111•111111111111•111•
Street
1
My garage is
single -story
along this
property line
while along the
other property
line the house is
two story — so I
can have a 5'
setback on one
side and a 10'
setback on the
other? This is
how the County
has always
done it.
Proposed Residential Setbacks
0 Tabular format
of Delete minimum 2,640 sq. t. separation between B-1
zones
Current
Proposed
Front Setback
25'
15'
Garage
25'
20'
Side Yard
5' /story
1
5'
Side Yard (flanking)
25'
15'
Rear Yard
15'
20'
Proposed Residential Setbacks
0 Tabular format
of Delete minimum 2,640 sq. t. separation between B-1
zones
CURRENT
Pl
A Two -Story House
1
■...•..■■■■■■.■■..■.•■•■ ■.•1
Street 50' ROW
P/L
10' Border Easement (Typ)
• •.•.a ■. •••••••••••••••••••
Street 24 -28' ROW
• Hearing before the Planning Commission